MGAs shine in survey, but brokers do have concerns

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Saxon East

By Content Director Saxon East

Once again, MGAs have shined.

That is the key take away from this year’s Insurance Times MGA survey, released today (15 September 2021), in which more than 1,000 brokers took part. 

Six MGAs were awarded top marks. 

Brokers gave feedback on 38 MGAs. Most received above three stars on service - and there were plenty of four and five star accolades awarded.

Brokers generally felt that MGAs had provided a good, responsive service during the Covid-19 pandemic. 

For example, 54% of brokers said MGAs had been “good” at adapting to customer needs with products and policies. 

Areas for concern 

The survey also revealed areas of concern. 

The IT solutions MGAs offer to brokers - whether it be an extranet or Acturis - needs further development. 

However, the big issue remains capacity. 

Around 30% of brokers said they were “very” concerned about MGA capacity, compared to 30% who are “moderately” concerned.

Digging into the comments, here are some of brokers’ main concerns: 

  • Certain sections of the market, such as directors and professional indemnity, are too reliant on a handful of big players. 
  • MGAs changing providers every couple of years.
  • Capacity providers fuelling MGAs with cheap rates that are unsustainable.
  • Insurers looking to clean out their books to improve underwriting could easily cut MGAs.
  • Lloyd’s, once a major backer, is now viewed with nervousness, with fear they will pull the plug on provision. 

five star

Click here to find out about the MGA ratings 

There is a general nervousness, especially around a few big players - although we will not single them out.

Capacity is causing some players to get a bad reputation. 

This is forcing brokers to look elsewhere. 

Despite being a difficult issue, it is also an opportunity. Those MGAs with a solid track record of backing from A-rated paper, with stable providers, can be more aggressive in communicating and marketing it to brokers. 

MGAs generally do a pretty poor job of playing up their capacity provision strength.

So, in summary, MGAs continue to provide an important service to brokers. They deserve their good reputation. 

And if we didn’t know it already, capacity is king. 

 

 

 

 

 

 

 

The 2025 Insurance Times Awards took place on the evening of Wednesday 3rd December in the iconic Great Room of London’s Grosvenor House.

Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
Many congratulations to all the worthy winners and as always, huge thanks to our sponsors for their support and our judges for their expertise.

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